Donald Trump has threatened a sky high tax on imported German cars
Dieter Kempf, president of free trade network BDI, said Germany sells more cars to the world than America simply because they are better.
He was responding to comments made by President Donald Trump about a perceived trade imbalance between Germany's and the US' car manufacturing industries.
The then President-elect complained about the high number of German-made cars such as Mercedes seen in the States, saying there were far less US-made vehicles in Germany.
And he threatened to slap a 35 per cent tax on all German imports to the US, just as he promised to do to Mexican goods in order to pay for his border wall.
But Mr Kempf pushed back against the billionaire's claims, saying US manufacturers need to adapt better to foreign markets in order to succeed, the Financial Times reported.
He said: “[The American motoring industry] has not lost it's competitiveness because there are trade restrictions in Europe for US cars.
"The American car industry could concentrate for far too long on a comfortable domestic market, which has different requirements for cars than exist in the global market."
Dieter Kempf said quality, not the exchange rate, was what kept Germany's car industry in demand
Mr Kempf also took issue with Mr Trump's trade advisor Peter Navarro, who claimed Germany was using a "grossly undervalued" euro to exploit the US and run a trade surplus.
Mr Kempf said: "When you look at the product that the US president has put forward as an example, that is cars, then we don't need a cheap exchange rate."
In 2016, Americans bought more than 1.3 million vehicles from German brands while Germans bought only about half a million U.S. branded cars, the Daily News reported.
According to Reuters, German car companies manufacture 850,000 cars in the US each year and provide American workers with 33,000 jobs.
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